Typical boiler room victim loses £20,000

The warning comes after the FSA surveyed callers to its consumer contact centre who had reported being targeted by boiler rooms – overseas operations using high-pressure selling techniques to persuade UK investors to buy shares. More than half (59%) of the 100 respondents to the survey had fallen victim to the scam by purchasing worthless shares and, of the victims, 13% had been conned by more than one boiler room. While the average loss was £20,000, three victims each reported losses of over £100,000. The survey found boiler rooms tend to prey on older people, with 38% of the victims...